Contracts

What are the essential requirements of a valid real estate contract?

-Competent parties -Consideration -Legal description -Mutual Agreement -Legal objective (purpose) -Signatures of parties -Written terms and conditions

While the purchaser has obtained loan approval, the lender's closing requirements have not been met. The contract is considered void after:

15 days

A buy-sell agreement is an example of:

A bilateral contract

When a real estate contract includes the sale of personal property, what legal document is required?

Bill of sale

Vendee refers to:

Buyer

The parties to a sales contract must comply with a specific date for performance of the contract. When the contract provisions state that time is of the essence, the transaction must close:

By the closing date stated in the contract, or the party may be in default

Which of the following is not required for a valid contract?

Competence

In a contract to purchase real property, what is the name of the clause that states that the buyer will not be held responsible to complete the purchase if the buyer cannot obtain sufficient financing?

Contingency clause

A buyer offers a low amount for a property and says that he will purchase the property if it does not sell within 30 days. This is a:

Contingency offer

With an executory contract, the vendee holds:

Equitable title

Once an offer to purchase is considered a binding contract, the buyer is viewed as an:

Equitable title holder

The seller accepts the buyer's offer to purchase and the closing date is scheduled for 90 days after the effective date of the contract. While the final closing documents are being prepared, the written purchase contract is considered:

Executory

When the terms of a contract have not been completed and neither party is in default, the contract is considered:

Executory

In real estate law and procedure, equitable title may be described as the:

Interest held by the buyer under an executory purchase agreement

A purchase contract has been signed by both parties and is considered a binding contract. What interest does the vendor have while the sale is pending?

Legal title

The term vendor refers to the:

Owner

Which of the following is the best example of an executory contract?

Pending contract

Person A promises to exercise something once Person B does what they promised to do. Who promises?

Person B

When does the vendee have equitable title?

Prior to closing with an executory contract

Buyer and seller mutually agree to all terms and conditions in a real estate resale contract. The amount agreed upon is referred to as the:

Purchase price

An example of a bilateral contract is an:

Real estate purchase contract

In order to sell a property, you need a:

Selling contract

The lawsuit to enforce a real estate sales contract must be filed within a specific period of time as required by the:

Statute of limitations

Which of the following is the best example of the remedy provided in the default paragraph of a real estate sales contract?

The buyer or seller may sue the other party for specific performance

Who holds equitable title prior to closing in an executory contract?

Vendee

Two parties orally promise one thing, but write and sign something else. Which contract will prevail?

Written

After a purchase contract is accepted, the parties may make additional agreements to the contract without making any changes to the original document by use of an:

addendum

A listing contract is considered an:

expressed, unilateral contract

A "time is of the essence clause" is a provision that:

performance of the contract should occur within the time prescribed in the contract